The global economy is stalling. Global production increased by only 3.3 percent last year-the lowest growth rate since the financial crisis-and is expected to rise by only 3.3 percent in 2016 as well, which is lower than originally predicted. The reason for the sluggish growth lies primarily in the changes taking place in the emerging countries: the Chinese economy continues to lose momentum, and low export revenues in the commodity- exporting countries are hindering economic activity. In the industrialized countries, however, the moderate pace of growth continues, not least due to increased purchasing power, which is in turn partly due to the decreased energy costs. In these countries, consumption remains an important pillar of growth, and thus the labor market situation is also improving. By contrast, investment remains subdued and only minor stimuli are expected from net exports since the momentum in the emerging countries is likely to increase only slightly in the coming year. The risks to the global economy are skewed to the downside. Increased uncertainty in the financial markets could worsen financing conditions. The euro area is facing the risk of deflation.